India imports over 85% of its crude oil, so blending home-made ethanol into petrol cuts both the import bill and emissions. Under the Ethanol Blended Petrol programme, the blending rate rose from just 1.53% in 2014 to about 15% in 2024 — hitting the E10 and E12 milestones early and racing toward a 20% (E20) target.
Ethanol Blending
Ethanol Blending
To cut oil imports and give farmers a new market, India has been blending ethanol — made from sugarcane and grains — into petrol. The blending rate rose from just 1.5% in 2014 to about 15% in 2024, ahead of the original schedule, saving over ₹1 lakh crore in foreign exchange and paying farmers tens of thousands of crores. The counter shows the ethanol blending rate.
1.5% → 15%
Ethanol blending
₹1 lakh cr+
Forex saved
E20
2025 target
Ethanol in petrol
| Year | Ethanol blending |
|---|---|
| 2014 | 2 % |
| 2015 | 2 % |
| 2016 | 3 % |
| 2017 | 4 % |
| 2018 | 4 % |
| 2019 | 5 % |
| 2020 | 8 % |
| 2021 | 10 % |
| 2022 | 12 % |
| 2023 | 13 % |
| 2024 | 15 % |
| 2025 | 18 % |
| by 2025 | 20 % — Target · met |
2014
0%
Ethanol blending
20142025
Since 2014
Added
+17 %
2014
2 %
2025
18 %
Target · met
20 %
by 2025
E20 blending target — met early
Why it matters Ethanol blending cuts crude-oil imports and emissions while creating a stable market for farm surpluses — though it competes with food and water.
- Ethanol blending: 1.5% (2014) → ~15% (2024); E20 target
- Saved ₹1 lakh crore+ forex; farmers paid ₹87,000 crore+
- Source: Ministry of Petroleum & Natural Gas
History
Notable impact
The programme has saved over ₹1 lakh crore in foreign exchange, cut CO2 emissions by tens of millions of tonnes, and paid sugarcane and grain farmers over ₹87,000 crore — creating a valuable new market for farm surpluses. It relies on India's position as a top sugarcane producer and on surplus rice and maize.
How it works
Ethanol — alcohol made from sugarcane or surplus grains — is blended into petrol so every litre at the pump is part home-grown fuel. It cuts crude imports, gives sugar mills and farmers an extra market, and burns cleaner. Oil companies buy ethanol from distilleries at set prices and mix it in; the same idea extends to compressed biogas from farm and city waste, and biodiesel — turning agricultural surplus and waste into energy.
Outlook
India hit its 20% ethanol-blending (E20) target in 2025, years ahead of the original 2030 goal — a shift that has saved well over ₹1 lakh crore in foreign exchange and cut oil imports. The central balance ahead is energy versus food and water: pushing blending higher (and rolling out flex-fuel vehicles) without diverting too much land, grain and water — so more biofuel comes from waste and non-food crops rather than the foodgrain plate.
The road ahead
The central balance ahead is energy versus food and water — since sugarcane is water-intensive, the next step is drawing more feedstock from waste and non-food crops as blending rises.
By the numbers
1.5% → ~15% ethanol blending (2014→2024); E20 target. ₹1 lakh crore+ forex saved; ₹87,000 crore+ to farmers. Sources: MoP&NG, PIB.
Source: MoP&NG — ethanol blending rate in petrol (%), 2014–2025.